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Crude oil steady near 1-week low ahead of central banks, U.S. data

Published 04/04/2013, 04:03 AM
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Investing.com - Crude oil futures were little changed near a one-week low on Thursday, as investors looked ahead to the European Central Bank’s policy decision due later in the day, as well as Friday’s U.S. jobs data for trading cues.

On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD94.48 a barrel during European morning trade, almost flat on the day.

New York-traded oil prices traded in a tight range between USD94.23 a barrel, the daily low and a session high of USD94.64 a barrel.

Nymex oil prices fell almost 3% on Wednesday to hit USD94.19 a barrel, the lowest level since March 25, after a U.S. government report showed oil supplies rose more-than-expected last week, while a separate report showed that U.S. employers added less jobs than forecast last month.

Oil traders now looked ahead to Friday’s highly-anticipated U.S. monthly nonfarm payrolls report to further asses the strength of the country’s economy.

Oil traders have long been taking cues from the monthly jobs report, the most-closely followed indicator of U.S. employment, because it offers insight into the economic health of the world's biggest crude oil consumer.  

An improving economy is generally correlated with increased demand for oil and fuel products like gasoline.

Investors also awaited the European Central Bank’s policy decision due later in the day, as well as comments by ECB President Mario Draghi for further hints on the future of its monetary policy.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery added 0.3% to trade at USD107.45 a barrel, with the spread between the Brent and crude contracts standing at USD12.97 a barrel.

The spread between the two contracts continued to trade near a nine-month low, due to an improving production outlook in the North Sea and amid growing concerns over the euro zone’s economic outlook.

At the same time, U.S. oil stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures, are declining as new pipelines relieve a supply glut there.

Crude inventories at Cushing fell by 287,000 barrels to 49.2 million last week, according to the EIA.

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